Have to say I’m not all that sure about it. For it’s very difficult indeed to work out how long you’re going to live and thus at what speed you should spend a pension pot. And thus the use of the insurance industry through an annuity.
On the other hand this makes clear one thing:
The individual will have a choice of three simple routes to withdraw the remainder: taking it as cash, subject to ordinary rates of income tax;
Tax relief on pensions contributions is not in fact tax relief. It’s tax delay. So, if Ritchie and his ilk want to cut that amount of delay then they’ve also got to work out some method of compensating at the other end of the process. Some special rules on tax relief on the payment of the pension itself.